A Case for Resurgence in the Philippine Textile Industry and how Collaboration with Taiwan will prove Mutually Beneficial.
by: Michael Alfred V. Ignacio, Trade Representative and Director of Commercial Affairs
In the 1990’s, the Philippine garments and textile industry was second only to semiconductors, as the country’s largest export sector. This all changed when the Multi-Fiber Agreement (MFA) which granted quota allocations from developing countries like the Philippines to developed countries ended in 2005.
As a result, what was once considered sunrise industry in the 1990s, quickly declined to becoming a sunset industry, with much of the global textile manufacturing business going to countries like China, Vietnam and India. Garment and textile enterprises in the Philippines which relied on the quotas underwent difficulties leading to closures of factories and downsizing.
According to a report by UN Comtrade, the Philippines was ranked 6th in 1970 among top exporters of garments and apparel to the United States. The Philippine garments and textiles industry posted continuous declines between 2005 and 2011, dropping 3% from US 2.29 million in 2005 to US$ 1.4 Billion in 2011. As of 2016, the industry exported a total of US$ 1.22 Billion worth of garments.
“Our garments industry used to be one of the top performing sectors both locally and internationally. But with the challenges brought about by the MFA, we saw a decline in the sector’s general performance,” said Undersecretary Ceferino Rodolfo of the Department of Trade and Industry and Managing Head of the the Philippine Board of Investments.
Given the Philippine’s substantial 100 million-population domestic market and local demand the Philippine Department of Trade and Industry still sees promising potentials for the Philippine garments and textiles industry. The Philippine Board of Investments focused its strategies to secure valuable global market access to key export markets such as Japan, Europe and the United States with Free Trade Agreements and Preferential Trade Arrangements. These strategic policies have proven very advantageous. The Philippines enjoys highly advantageous extended coverage GSP privileges in the US, with zero or significantly reduced tariffs across 5,057 products lines or 48% of the US’s tariff lines. The Philippines is also the only South East Asian country that enjoys GSP + privileges across more than 6,000 product lines that are exported to the European Union’s 28 member countries. In the USA, 70% to 80% of all Philippine Exports enter the US duty-free under the GSP or MFN arrangements.
Two years ago, the Philippines also successfully negotiated its Free Trade Agreement with EFTA countries in Europe. As a member of the ASEAN, the country also enjoys FTA privileges with ASEAN’s FTA partners such as Japan, China, India, Korea and Australia and New Zealand.
The Philippines, forecasted to rank at 24th, is also on-track to be a one trillion US Dollar economy and one of the largest economies in the world by 2050 with a projected GDP based on Purchasing Power Parity at US$1.615 Trillion. This is according to a study released by Price Waterhouse Coopers in February 2017.
Almost 2 decades of consistent high-economic growth, is making this a reality, with GDP growing at an average between 6% to 7%.
The Philippines likewise sets its eyes to position the country as Taiwan’s gateway to its New South Bound Policy target countries - strategic grouping of countries south of Taiwan that includes ASEAN, South Asian countries and Australia and New Zealand. Of these countries, the Philippines is its closest neighbor.
“A partnership and cooperation agenda between the Philippines and Taiwan to help with the resurgence of the garments and textiles industry in the Philippines can prove mutually advantageous and highly beneficial,” said MECO Chairman and Resident Representative Angelito T. Banayo.
Taiwan’s textile industry remains a bright spot in the global market, given its strengths in technology, production and innovation. Taiwan has carved out a niche for itself in functional textiles, functional apparel, home textiles and textiles for industrial applications. This is widely due to Taiwan’s investments in R&D, leadership in manufacturing capabilities and cross-industry collaboration, which enabled Taiwan to develop its highly-integrated supply chain. Today, Taiwan accounts for 70% of the world’s production of functional fabrics, and is ranked the world’s sixth largest textile exporter.
The Philippines on the other hand, enjoys a sustainable and strong domestic market buoyed by its 104-million population and consistent high-growth economy. The country’s labor force is among the youngest in the world, with a median-age of 24, highly-trainable and english speaking. Every year, the Philippines produces more than 600,000 university and tertiary-level graduates.
These, coupled with a successful historical proof of concept that the country can be globally competitive in the global garments and textiles industry, lays the ground work for DTI’s focus to re-develop the industry. Under the DTI’s Manufacturing Resurgence Program, it is likewise formulating a Garments and Textile Industry Roadmap to chart how the country will position and grow its textile and garments industry.
Manila Economic and Cultural Office (MECO), the Philippine representative office in Taipei, through its commercial affairs section, the Philippine Trade and Investment Center, sees a lot of potential in possible partnerships between Taiwanese and Philippine firms to take advantage of the market opportunities, given what both sides have to offer.
Last April 26, 2019, MECO organized a high-level Philippine Investment Forum at the Grand Hyatt Hotel in Taipei, that was widely attended by some 400 Chairmen, CEOs and top Executives of Taiwanese companies looking at the prospect of investing in the Philippines, given the current global trade situation and conflicts between major economic players.
In 2018, MECO organized a business delegation composed of representatives from Philippine companies in the Philippine garments and textiles and allied industries, to undergo a week-long training for non-woven fabrics manufacturing at the Taiwan Textile Research Institute. “This year, we are working with the Taiwan Textile Federation, through its Director for Market Development, Ms. Melissa Wang, to possibly organize a substantial Philippine business delegation to Taiwan’s flagship textile industry event called the 2019 Taipei Innovative Textile Application Show (TITAS).
“We see Taiwan as a source for strategic cooperation, technology collaboration and joint venture partnerships to move our Textile Industry agenda forward, in a win-win scenario, given what both sides have to offer. Next year, we also want to organize a Taiwanese business delegation to visit the Philippines to explore potentials of partnership in the sector,” said Trade Representative and Director of Commercial Affairs, Mr. Michael Alfred Ignacio of MECO’s Philippine Trade and Investment Center.
In addition to the planned exchange of business missions, MECO and the Taiwan Textile Association also plan to hold a series of seminars that will promote Philippines-Taiwan partnerships in the textile and garments industry.
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About the Philippine Trade and Investment Center in Taipei www.investphilippinestaiwan.com www.facebook.com/dtitaipei
The Philippine Trade & Investment Center in Taipei is the Commercial Affairs Section of the Manila Econo mic and Cultural Office and the representative office of the Philippine Department of Trade & Industry in Taiwan.
About the Manila Economic and Cultural Office www.meco.org.tw
MECO represents economic and cultural interests of the Philippines in Taiwan and has been authorized and conferred with authority to perform functions usually carried out by Philippine foreign missions but of a non-political, non-security nature. It performs consular functions and is tasked with the duty of protecting and promoting the well being of Philippine nationals in Taiwan.
11 Philippine Food Manufacturers to represent Philippines at the FoodPhilippines Pavilion at Taipei Food Show 2019
11 Philippine food manufacturing companies set their eyes on the Taiwanese mainstream market as they join this year’s FoodPhilippines Pavilion at the Taipei Food Show 2019 happening at the World Trade Center Taipei on 19-22 June 2019.
This year, Manila Economic and Cultural Office (MECO), along with its commercial affairs section, the Philippine Trade and Investment Center (PTIC) in Taipei, partners with the Center for International Trade Exhibitions and Missions (CITEM) to once again showcase our lineup of top-tier food manufacturers and exporters at the FoodPhilippines Pavilion at the said show.
Taipei Food Show is Taiwan’s leading food trade fair and exhibition platform and is considered one of Asia’s leading food shows. Under Taipei Food Show Umbrella, the trade exhibit will house several halls that will feature the following categories: Foodtech & Pharmatech Taipei, Taipei Pack, Taiwan HORECA and Halal Taiwan. Organized by the Taiwan External Trade Development Council (TAITRA), Food Taipei aims to link the entire food industry supply chain in Taiwan with the global market.
In 2018, the Taipei Food Show joint expo created an outstanding record of 1,628 exhibitors and 4,059 booths in 2018. (Food Taipei had 1,079 exhibitors and 2,197 booths). The FoodPhilippines exhibitors last year booked initial sales commitments totaling over US$25 Million, not counting repeat orders.
“This year, our participation at the Taipei Food Show, will feature a strategically curated selection of Philippine food manufacturers and exporters eyeing the 24 million Taiwanese market, and Taiwan as gateway to other advanced economies in East Asia targeted for a sustainable marketing reach and campaign,” said MECO Chairman and Resident Representative Angelito T. Banayo.
Our FoodPhilippines lineup of exhibitors this year, will be composed of a mix of more established mainstream companies and high-innovation food manufacturing companies. Leading our line-up of more established exporters are companies such as Century Pacific Food, Inc., Destileria Limtuaco & Co. Inc., Team Asia Corporation, Tropicana Food Products, Inc., and Grand Asia Integrated Natural Coco Products Corporation, whose joint capacity, product range and supply position them to successfully penetrate Taiwan’s mainstream buying public.
Six other companies such as JND Manufacturing Industries, Inc., Leonie Agri Corporation, Mira’s Turmeric Products, Pasciolco Agri Ventures, Yearluck Food and Industrial Corporation and Yanyan International Philippines, Inc. will introduce their products to Taiwan, in order to target Taiwan’s lucrative niche market segments such as health, wellness and specialty herbal, natural, organic and general food products.
Century Pacific Food, Inc. is one of the Philippines largest canned goods manufacturing and exporting companies, and boasts of a wide array of products from canned tuna and sardines, canned meat, bottled seafoods, frozen and processed meat and poultry products, preserves, coconut water and milk and fruit preserves.
Destileria Limtuaco is the country’s oldest distillery dating back to 1850. Boasting a rich 167-year history, the company is a leading producer of alcoholic and non-alcoholic drinks, Philippine craft spirits and trendy liquor.
The Philippines is the world’s second largest producer of coconuts and coconut products next only to Indonesia. Given our supply stream and capacity, three major companies are joining FoodPhilippines at Taipei Food Show this year to reinforce our global market leadership and further expand our market reach.
Team Asia Corporation is a major manufacturing company for coconut products and VCO. The company boasts of its coconut products that are free from genetically-modified organisms (GMOs) and free from any chemicals and pesticides and passed through a rigid production process.
Tropicana Food Products, Inc., founded in 1975, has emerged to become one of the Philippines most diversified and most integrated manufacturer and processor of coconut products in the world.
Established in 2015, Grand Asia Integrated Natural Coco (GAINCOCO), has emerged to be one of the Philippines’ major exporters of coconut products offering a wide range of coconut product applications. The company has an existing processing capacity of 500,000 coconuts per day.
Fine food and specialty food producers also complete the line-up of companies looking to tap into Taiwan’s lucrative and niche specialty and health foods market.
Mira’s Turmeric Products leverages on the healing properties of natural and organic products such as ginger and turmeric to offer their line of sugar free powders for various food applications, under the Mira’s Well food line.
Leonie Agri Corp manufactures culinary herbs, herbal products and juices and natural and organic lines to target Taiwan’s health conscious niche market.
JND Manufacturing Industries, Inc. offers its line of fine and specialty food with high-nutrition content, such as those made from mung beans and mooring leaves.
Pasciolco Agri Ventures joins this year’s line-up of companies with their wide-ranging products lines composed of biscuits, confectionaries, and natural and organic products for the cookery and baking market segment.
Yanyan International Philippines, Inc. completes the line-up of Philippine exhibitors with their range of products from bread, carbonated and non-carbonated drinks, chocolates, juices, pastries and snack foods and natural and organic products.
Yearluck Food and Industrial Corporation joins us at Taipei Food Show again to build on their increasing base of Taiwanese buyers for their quality ice cream cones and similar products.
Philippines to showcase a bigger and better start-up delegation and participation at INNOVEX 2019 in Taipei
Following the successful participation of the Slingshot Philippines Startup Pavilion and Delegation at Innovex in 2018, the Manila Economic & Cultural Office (MECO), and its commercial affairs section, the Philippine Trade & Investment Center (PTIC) in Taipei, are proud to bring a select delegation of top-notch and cutting-edge, high innovation start-ups and community builders to represent the Philippine Start-Up Community and Ecosystem at the bigger and better Slingshot Philippines Pavilion at INNOVEX 2019.
MECO Chairman and Resident Representative Angelito T. Banayo said “We are very excited to support the Slingshot Philippines Startup Ecosystem Pavilion and Delegation at INNOVEX this year, given that technology innovation cooperation is one of our priority industry collaboration areas with Taiwan. Recognizing Taiwan’s strengths and global leadership position in electronics manufacturing and technology innovation and leveraging the Philippines’ substantial market-size, global market access, emerging innovation community and the creative talents of our globally sought-after human resource - the partnership between our start-up communities will be a win-win collaboration for the two next door neighbors in today’s changing economic and technology landscape.”
In cooperation with organizing partners, Export Marketing Bureau of the Philippine Department of Trade and Industry, and QBO Innovation Hub, the Philippine delegation will once again showcase the best of Philippine startup technologies and game-changing solutions for the world today. The 11 start-ups offer cutting-edge innovation in diverse, currently relevant fields such as Artificial Intelligence, Machine Learning, Geospatial Mapping, Innovative Housing Solutions, Cyber Security, Smart Advertising & eCommerce, Education, FinTech, Logistics and Data Science-enabled Market Research.
MECO Philippine Trade & Investment Center is bringing 11 startups and 2 incubation accelerators to represent the best of the Philippine Start-up community at INNOVEX, Taiwan’s largest and most important annual start-up event.
“We are proud to have an impactful participation and excellent representation this year composed of the high-innovation, talent and creativity of the Philippine Start-Up community at Taiwan’s Innovex 2019, to showcase the diverse and cutting-edge solutions from our start-ups that aim to solve very current day-to-day problems, ” said DTI Trade Representative and MECO Director of Commercial Affairs Mr. Michael Alfred V. Ignacio.
Among the award-winning Philippine start-ups that will be represented by their founders are Antipara Exploration, Container Living Philippines, Cryptors, Gypsy, Investagrams, JazzyPay, Mober, Qikwire, Retailgate, Rumarocket, and Senti.
Antipara Exploration offers automated-data analyses in their sub-sub-marine geospatial mapping technologies for the maritime industry and marine environmental mapping. In a country-archipelago such as the Philippines with more than 7,106 islands, this is a crucial home-grown technology with many important applications.
Container Living Philippines, offers a modular-construction approach to offer modern housing solutions using shipping containers that are disaster-resilient and highly customizable to the client’s needs.
Cryptors, offers a free mobile app that ca detect and block hackers preying on free public-wifi platforms. They also revolutionized cybersecurity trainings, making them available at very low rates compared to prohibitive market service fees.
Gypsy is a Philippine advertising technology platform, that offers advertisers, not only the market reach, but valuable data-gathering technologies and hyper-targeting solutions to effectively launch campaigns via proprietary-apps installed in tablets in ride-hailing services and public transportation alternatives.
Mober offers a mobile platform to easily find and book location-based, on-demand tailor-fit trucking and moving solutions for businesses and individuals, similar to how ride hailing solutions do their businesses.
Three FinTech companies are also joining the Philippine delegation, namely investagrams, JazzyPay and Qwikwire.
Investagrams is a one-stop-shop platform that offers beginners guides and tips for individuals who want to invest in the stock market. Investagrams offers monitoring of hundreds of stocks realtime and the ability for users to engage on virtual trading transactions.
JazzyPay is a Philippine payment platform that offers efficient billing solutions for businesses from any part of the world, to bill their clientele. JazzyPay offers their services via their proprietary app, email, sms or other messaging platforms.
Qwikwire offers advanced business solutions such as Skas Property Management services, SAP-integrated billing and invoicing systems, cross-border settlements via their own proprietary blockchain powered multi-listing engine. Qwikwire also offers a niche service catered to provide comprehensive real estate solutions for brokers and property developers.
Among the Philippine start-ups offering Artificial Intelligence innovation applications are Retailgate, Rumarocket and Senti.
Retailgate uses its AI-powered solutions to help retailers gain competitive market intelligence through retail analytics. Employing artificial intelligence, they offer their platform to empower brick-and-mortar stores by providing access to AI-analyzed market information on customer traffic and dwell time, forecast demand levels, assess marketing effectivity and determine conversion rates.
Rumarocket developed its own AI-enabled algorithm that offers HR analytics and machine learning solutions for talent recruitment, management and retention for enterprises and companies in their HR and Recruitment functions. Rumarocket’s solutions are aimed ensuring meaningful impact on clients’ bottomline and strategic HR management.
Senti Techlabs offers its proprietary artificial intelligence-powered solutions to businesses for market and audience sentiment data collection and analyses, using natural language processing and machine-learning processes.
This year, and in addition to QBO Innovation Hub, another incubator-accelerator, Spring Valley Technology and Innovation Hub, located in Roxas City will join the Philippine delegation at Innovex. Spring Valley Technology and Innovation was created as a home for innovation and technology development both for local and international start-ups and technology developers in central Philippines. Spring Valley also partnered with the Province of Capiz and the Department of Trade and Industry to create Capiz’s Fablab and Innovation Center.
This year’s Philippine delegation to Innovex is a close cooperation and partnership of the MECO Philippine Trade and Investment Center in Taipei with the DTI Export Marketing Bureau and QBO Innovation Hub. The participating start-ups were selected following a rigorous selection criterial from a list of applicants after a call to participation was announced to the Philippine start-up community.
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About the Manila Economic and Cultural Office (MECO) www.meco.org.tw
MECO represents economic and cultural interests of the Philippines in Taiwan and has been authorized and conferred with authority to perform functions usually carried out by Philippine foreign missions but of a non-political, non-security nature. It performs consular functions and is tasked with the duty of protecting and promoting the well being of Philippine nationals in Taiwan.
The Philippine Trade and Investment Center in Taipei is the commercial affairs section of the Manila Economic and Cultural Office and represents the Philippine Department of Trade and Industry for trade and investment promotion and representation in Taiwan.
Date: May 15, 2019
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The Slingshot Philippines delegation shines at Innovex, the startup show at Computex Taipei 2018